Question

Which statement about Regional Rural Banks (RRBs) is correct?

Options

• They mainly serve large industrial houses in urban areas

• They are sponsored by Public Sector Banks and focus on small and marginal farmers and rural development

• They are wholly owned foreign banks operating only in big cities

• They provide only high-interest loans to maximise profit

Answer 1

They are sponsored by Public Sector Banks and focus on small and marginal farmers and rural development

Explanation: 

RRBs are sponsored by Public Sector Banks, are known as “small man’s banks”, and target small and marginal farmers, agricultural labourers, artisans, and small entrepreneurs in rural areas at lower interest rates.